Despite acceleration of technology, risk takers are key for insurance companies, says industry veteran

As organizations in the insurance sector increasingly lean on artificial intelligence (AI) for solutions, they must remember that human expertise remains essential. Krista Glenn, a veteran in the field with over 30 years of experience, highlighted the importance of human decision-making amidst technological advancements.

‘Relying on AI as a quick fix for the worker shortage is just putting a bandage on a bleeding wound,’ Glenn asserted. As experienced professionals retire, the industry faces a looming talent deficit that could leave over 400,000 positions unfilled by 2035. Technology brings transformation, but it’s the people who are pivotal in shaping the industry’s future.

Glenn, who currently serves as the executive vice president and chief claims officer at Westfield Specialty, emphasized the need for the industry to embrace calculated risks, stating, ‘We can’t afford to wait. The future belongs to those willing to take strategic risks and invest in the next generation.’

AI and automation: a tool, not a replacement

The insurance sector is grappling with a crisis as many seasoned professionals retire without enough new talent stepping in. This shortage extends beyond underwriters, impacting various roles across the industry, including claims, IT, risk management, and operational support.

While AI and automation may promise efficiency, they do not address the underlying people problem. ‘Without the right talent in place, technology is useless,’ Glenn noted, stressing that attracting new talent requires a shift in industry mindset. Traditionally risk-averse, she argued that prioritizing appropriate risk-taking is essential.

‘We always need to do our homework. We need to cross those t’s and dot those i’s. We need to be confident that we’ve made the right decision so that we can take those bold, strategic moves that will keep driving us forward,’ Glenn explained.

Embracing calculated risk

Glenn’s perspective is that the industry must adapt and embrace calculated risks rather than fear failure. ‘We can’t stay static; we have to keep driving forward. And sometimes we’re not going to get it right, and sometimes we’re going to fail, but we’re never going to do anything if we don’t try,’ she remarked.

As technology continues to evolve, the ability to adapt will be crucial. AI and its advancements are set to impact the insurance industry, yet Glenn cautioned against assuming they are the sole focus of future innovations. ‘I think that AI and Gen AI are going to have a huge impact over the next five, 10 years and beyond,’ she said.

However, with change comes resistance, and Glenn identified this as a significant barrier. ‘Part of what I’ve seen… is people being a little resistant to it because it’s new,’ she pointed out. Therefore, embracing new technology is vital not just for efficiency but for keeping pace with an increasingly complex industry.

‘You have to help the people that are in the industry to be ready for it and to adopt it and to be able to use what we put in front of them,’ she concluded, emphasizing the need for proper training and support to ensure that professionals are equipped to thrive in the evolving landscape.